How to Save 1,000's on Self Employed Loans

Self employed loans used to be hard to find and expensive. However more and more lenders are offering Self-employed loans and they can be tailored to suit your individual financial circumstances. Self-employed workers are getting an increasing amount of access to "fairly-priced" home loans because of the increased competition within the financial markets. A lot of lenders now specialise in funds for self-employed people in the UK, with or without 3 years accounts.

Secured Self-Employed Loans

Secured loans for the self-employed can provide a large sum to the borrower provided the lender is satisfied with the value of the collateral offered. And these loans are available for self employed applicants with or without proof of income. Secured loans generally offer better rates but they are offered on the back of collateral e.g. your house. Securing the loan on your property will help in bringing down the interest rate to a minimum, as opposed to an un-secured loan. So whether you're a contractor or you run your own business, whether you have certified accounts or no proof of income, you can still raise finance with a secured loan for any purpose e.g. Debt consolidation, home improvements

Unsecured Self-Employed Loans

Unsecured self employed loans are meant for tenants or non-homeowners. The likelihood of getting a self employed unsecured loan and the interest rate available will be linked to whether you have a certified income or not, your disposable income and of course your credit history. Now that unsecured loans are becoming easier to obtain, particularly if the loan is being used for business purposes as it means you home or car will be less at risk from repossession. An unsecured loan will also have higher interest rates so make sure and check out exactly how much you will have to pay over the duration of the loan.

Credit Rating

If you are a homeowner and your property is worth more than the mortgage owed on it, you can borrow against that equity with a self employed loan to raise cash for whatever you want. However, the amount of money you can borrow and the interest rates you will pay can be affected by your Credit Rating. Whereas some UK lenders may refuse a loan due to bad credit, or discriminate between homeowners and tenants there are lenders who will be sympathetic to your loan requirements whatever they may be, good or bad credit history. UK homeowners with adverse credit, poor credit scores, bad credit history, mortgage defaults or with County Court Judgements (CCJ's) are still able to apply for self-employed loans but will end up paying very high interest rates in some cases.

Conclusion

Self-employed loans are tailor made to the financial requirements of people and are now easily available in the financial market. If you are self employed and have a good credit rating then you should have no problem in getting a loan at very competitive interest rates. However, a bad credit rating will mean you end up paying a lot more over the duration of the loan.

With so many companies offering competitive self-employed loans you should do your homework and potentially save £1,000' over the life of the loan.

Paul Hockney is an online loan expert who provides no income proof loan tips and advice.

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